All Forum Posts by: Account Closed

As with many programs, the idea is good but implementation will be questionable. The key issues are damage to property and eviction. If the government provided some insurance coverage for damage exceeding the enhanced security deposit (would have to be documented of course) and exception from eviction courts for a speedy eviction, then I am sure many would sign on. Otherwise not worth putting a 100K plus asset in the control of people who are not managing their life well at all.

Why do you have to choose? How about Stocks AND Rentals? 

EDIT: Just read some of the responses and while I get this is a REI board the sheer nonsense posted about stocks is amazing. Like every stock will lose money over 30 years! Or stocks are speculation and REI is 100% sure profit. What total and utter CRAP.

Stocks via ETFs and Mutual funds allow you to literally own a piece of the entire market. What equivalent vehicle exists for rentals? Sure there are REITs and Syndications but these are tiny compared to an S&P 500 or global market fund. And stocks have close to ZERO transaction costs and second to second liquidity. You can buy with very little capital and add small amounts regularly. You can leverage (via margin) and you can borrow against your brokerage holdings. So not that different from real estate.

Dont get me wrong. I own real estate but also own index funds and stocks. There is a place for both in any diversified portfolio.

Well said. The entire global financial system, and the very notion of "money" itself is nothing more than a shared delusion everyone has agreed to believe in. That doesn't mean its not useful, it is tremendously useful. But that shared belief system can be changed. For example, the notion that deficit spending will result in inflation and devaluation of the dollar is a belief that less and less people believe now. If people actually believed that, bond yields would explode.  You dont have to wait for the Fed to raise interest rates. China can dump treasuries, currency speculators can dump the dollar. But this does not happen because everyone believes you cant fight the Fed, and they are correct. MMT is a change in the belief system. If enough people believe it, it can be sustainable. If most people dont, we get the doomsday scenario of runaway inflation some day in the future.  It can go either way and nobody can really predict. But we are all on this ride because there is no other ride to get on if we get off this one. 

Nobody can consistently predict the the future. Least of all some huckster pitching scam courses and books. RDPD may have had some good concepts but RK certainly didn't invent the idea of investing. If he is such a great investor, why does he need to scam ordinary Joes and Janes out of tens of thousands of dollars in scam seminars? Or pitch Silver or Bitcoin or whatever fad of the day people want to hear about? He is a huckster plain and simple. His RDPD book packaged common sense and sold well, and there is nothing wrong with that. But that doesn't make him some kind go Seer!

I have always rented my Bay Area property to people with impeccable credit except ONCE and those tenants were the worst. Ive had people stay as long as 4 years and as little as 6 months. Two tenants broke their lease, one had bad credit and one had perfect credit. The bad credit tenant caused a lot of damage, had cops over for loud noises and I was happy to see them go. But all I got from them to keep was their deposit. The good credit tenant who left after 6 months due to job move negotiated with me and we agreed on a 2 month lease breakage fee which they happily paid. And left the house in immaculate condition. The place was vacant for 15 days and I had a new tenant in. Didn't even have cleaners come in in between.

The point is you cant predict your life let alone your tenants. Things will change but the people with great credit are responsible and easier to deal with. Thats WHY we check credit score in the first place isn't it?

Im starting a pro basketball team. LeBron is available but he is so good he might be recruited away by another team. Should I settle for this rookie from a Division C college that will probably stay a long time? Both will sign a one year contract.

Because as we all know real estate goes up indefinitely and infinitely forever right? I smell 2008 all over again.

Well said. The "refi till you die" sentiment here totally ignores things like risk, goals, age of the investor, total net worth etc. 

Welcome to corporate America. Insurance is the biggest scam in the country. Its the only product that companies lose money on when you actually use it. So they want you to buy it and not use it. Practically, home insurance is good if your house completely burns down but that's pretty much it. Otherwise its there to protect the banks money.

Isn't it just easier to invest the money with a brokerage in stocks or index funds and then just take a margin loan against it? Its exactly the same logic, your investment continues to grow, you dont need to make any payments, including interest as long as you have enough collateral, if you die the loan gets paid off from your portfolio and your heirs get the rest with a stepped up tax basis. Without the exorbitant fees and "insurance" component of it.